IRIS Software Group Strikes £500m Deal for Dext
Deal News | Dec 04, 2024 | Business Cloud
IRIS Software Group, a leading provider of accountancy, education management, HR, and payroll solutions, has agreed to acquire Dext Software Ltd, a firm specializing in bookkeeping automation. The deal reportedly exceeds £500 million in value. IRIS's existing valuation is over £3 billion, following investments by private equity players such as Hg and Leonard Green & Partners. Notably, Hg is also an investor in Dext. Dext's CEO, Sabby Gill, who joined in 2022, will join the IRIS global executive team once the transaction is finalized, expected in 2024. The acquisition aims to integrate Dext's platform with IRIS Elements, enabling a full-spectrum solution for the accountancy sector. This merger is set to enhance practice management, compliance, and bookkeeping processes through advanced technologies. Dext currently serves over 700,000 customers globally, connecting with more than 35 bookkeeping software platforms and over 11,500 financial institutions.
Sectors
- Financial Technology
- Private Equity
Geography
- United Kingdom – The principal operations and deal activity of IRIS Software Group and Dext Software involve the UK, with prominent executives and business maneuvers taking place in the region.
Industry
- Financial Technology – The article involves companies developing and providing technology solutions for the financial industry, including accountancy and bookkeeping.
- Private Equity – Hg and Leonard Green & Partners are private equity firms involved in the transaction, highlighting the role of private equity in the acquisition.
Financials
- £500 million+ – Reportedly the value of the acquisition deal between IRIS Software Group and Dext Software Ltd.
- £3 billion – The valuation of IRIS Software Group as of last year after stake sale and reinvestment by Hg and Leonard Green & Partners.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| IRIS Software Group | Acquirer | Company | A global provider of accountancy, education management, HR, and payroll solutions. |
| Dext Software Ltd | Target | Company | A firm specializing in bookkeeping automation, serving over 700,000 customers worldwide. |
| Hg | Investor | Company | A private equity firm involved with both IRIS Software Group and Dext Software Ltd. |
| Leonard Green & Partners | Investor | Company | Private equity firm that invested in IRIS Software Group. |
| Sabby Gill | CEO of Dext, joining IRIS executive team | Person | CEO of Dext, appointed in 2022, formerly worked with Sage. |
| Elona Mortimer-Zhika | CEO of IRIS Software Group | Person | Current CEO involved in this strategic acquisition and integration. |